Assured Guaranty Files Complaint To Compel The Puerto Rico Oversight Board To Certify the PREPA Restructuring Support Agreement For Implementation Under Title VI of PROMESA

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HAMILTON, Bermuda--(BUSINESS WIRE)--Assured Guaranty Ltd. (NYSE: AGO) (together with its subsidiaries,
Assured Guaranty) released the following comments regarding the
complaint filed yesterday requesting a judgment that the Financial
Oversight and Management Board for Puerto Rico (Oversight Board) comply
with its duties under the Puerto Rico Oversight, Management, and
Economic Stability Act (PROMESA) and certify the Puerto Rico Electric
Power Authority (PREPA) restructuring support agreement (RSA) for
implementation under Title VI of PROMESA.

Two Assured Guaranty bond insurance subsidiaries, Assured Guaranty
Municipal Corp. and Assured Guaranty Corp., filed a complaint in Federal
District Court in Puerto Rico yesterday seeking (i) a declaratory
judgment that the PREPA RSA is a “Preexisting Voluntary Agreement” under
Section 104 of PROMESA and the Oversight Board’s failure to certify the
PREPA RSA is an unlawful application of Section 601 of PROMESA; (ii) an
injunction enjoining the Oversight Board from unlawfully applying
Section 601 of PROMESA and ordering it to certify the PREPA RSA; and
(iii) a writ of mandamus requiring the Oversight Board to comply with
its duties under PROMESA and certify the PREPA RSA.

With this action, Assured Guaranty seeks to remedy the continuing
failure of the Oversight Board to comply with its duties under PROMESA
and act on the PREPA RSA. When Congress passed PROMESA on June 30, 2016,
the PREPA RSA was the only preexisting consensual agreement between a
Puerto Rico government entity and its creditors. Congress acknowledged
that fact and grandfathered the PREPA RSA, singling it out for
fast-track approval under the consensual resolution provisions of Title
VI of PROMESA. PREPA submitted the PREPA RSA to the Oversight Board in
late April 2017 for certification and implementation under Title VI of
PROMESA. Because Congress granted the PREPA RSA special status as a
“Preexisting Voluntary Agreement”, it provided for expedited
certification of the PREPA RSA under PROMESA, without the need for
substantive review and evaluation by the Oversight Board.

In fact, at Congress’ specific direction, PROMESA provides that the
Oversight Board only has to make a ministerial determination that the
proposed debt modifications included in the PREPA RSA submitted to the
Oversight Board are consistent with the preexisting PREPA RSA. In spite
of Congress’ clear intent to preserve the PREPA RSA, the Oversight Board
has exceeded the scope of its authority by second-guessing a consensual
restructuring ratified by Congress, PREPA, two Commonwealth
administrations and the creditors and by arbitrarily failing to issue
the ministerial certification required under Title VI of PROMESA.
Finally, the Oversight Board’s failure to certify the PREPA RSA for
implementation under Title VI of PROMESA and its continuing efforts to
circumvent the requirements of PROMESA are likely to prevent the
Commonwealth of Puerto Rico and its instrumentalities, including PREPA,
from accomplishing a primary objective of PROMESA, which is the ability
to regain access to the capital markets.

Irrespective of the Oversight Board’s continuing failure to comply with
its duties under PROMESA and certify the PREPA RSA, payments to holders
of PREPA Bonds insured by Assured Guaranty will continue to be paid
without interruption for the life of the bonds. Assured Guaranty
unconditionally and irrevocably guarantees full and timely payment of
scheduled debt service, in accordance with the terms of Assured
Guaranty’s insurance policies, and upon payment, takes over the rights
of the insured bondholders. Assured Guaranty is determined to take
reasonable and necessary actions to protect its rights as insurer of
PREPA Bonds.

With $12 billion* in claims-paying resources across its group of
companies, which includes an $11 billion investment portfolio that alone
generates approximately $400 million of annual investment income each
year, Assured Guaranty’s liquidity and capital positions are very strong.

*Aggregate data for operating subsidiaries within the Assured Guaranty
Ltd. group. Claims on each subsidiary’s insurance policies / financial
guarantees are paid from that subsidiary’s separate claims-paying
resources. Details of the components of claims paying resources are set
forth in the most recent Assured Guaranty Ltd. Financial Supplement,
which may be found at Assuredguaranty.com/agldata.

Cautionary Statement Regarding Forward-Looking Statements

Any forward-looking statements made in this press release reflect
Assured Guaranty’s current views with respect to future events and are
made pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Such statements involve risks and
uncertainties that may cause actual results to differ materially from
those set forth in these statements. These risks and uncertainties
include, but are not limited to, those resulting from Assured Guaranty's
inability to execute its strategies, including its loss mitigation and
risk remediation strategies, and negative developments that may impact
Assured Guaranty's liquidity and capital, and therefore its ability to
make claim payments on time and in full, including less demand for
Assured Guaranty's financial guaranty product, or adverse developments
with respect to its insured or investment portfolio, and other risks and
uncertainties that have not been identified at this time, management's
response to these factors, and other risk factors identified in Assured
Guaranty’s filings with the Securities and Exchange Commission. Readers
are cautioned not to place undue reliance on these forward-looking
statements, which are made as of June 27, 2017. Assured Guaranty
undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by law.

Assured Guaranty Ltd. is a publicly traded Bermuda-based holding
company. Its operating subsidiaries provide credit enhancement products
to the U.S. and international public finance, infrastructure and
structured finance markets. More information on Assured Guaranty Ltd.
and its subsidiaries can be found at AssuredGuaranty.com.